Be aware of risks

Waterloo Region Record

Re: Financial planner charged over missing $1.3M — Dec. 21

This article told the story of a financial adviser, formerly operating out of Waterloo, who now faces charges that include fraud over $5,000, theft over $5,000 and forgery. She is accused of failing to invest funds deposited with her by clients and redeeming RRSPs belonging to others.

The charges have yet to be proven in court and the accused should be presumed innocent until they are. However, this case should remind the public of the potential risks involved when clients surrender control of their assets to an intermediary for investment.

The more small investors learn about investments and the more direct control they retain over their assets, the higher their level of safety and, in most cases, the lower their costs.

Given the declining availability of defined benefit pension plans in the private sector, and consequent greater reliance on other forms of retirement planning, the importance of financial education is higher than ever, and the earlier it begins, the better.